The notion that public-sector
wages are lower than
private-sector wages is an
oft-repeated claim, but one that has trouble standing up to reality. In
addition, the comparisons can get complicated.

In an essay in the National Affairs journal, scholar Daniel DiSalvo
provides evidence that public-sector workers in lower-wage jobs are paid more
than their private-sector counterparts. For example, nationwide data from the Bureau of Labor Statistics show that government office clerks average $27,000 a year in
salary, versus $23,000 in the private sector. Janitors’ wages show similar
trends: $23,000 in the public sector compared to $20,000 in the private sector.
(Public school and local
government janitors earn even more, coming in at more than $28,000 on
average nationwide.)

However, the
public-sector-makes-less claim stands up better when limited to higher-paid
employees. Accountants and
tax preparers,
for example, earn $74,000 a year in the private sector, versus just under
$60,000 for local government accountants. On the other hand, national average salaries for state government employees overall are
higher than the private sector average: $48,000 vs. $45,000.

Government employees come off even
better when fringe benefits are included. On average, state and local public-sector
employees earn $6 per hour more in wages than private-sector employees. When
benefits are added, this rises to a $12 government
employment premium
over private-sector counterparts. Those figures are based on national
statistics; Michigan comparisons may differ, in part because public-sector compensation
levels have risen
here over the past 10 years, while private-sector compensation has fallen.

Finally, the comparisons do not take
into account the ability of many public-sector employees to begin collecting
retirement benefits at age 55 or even earlier. Sometimes the benefits of
government retirees even exceed their compensation as active employees.

The one-size-fits-all
narrative of private-sector wages being greater than public-sector wages is not
borne out in the data.

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